Benzinga | Jan 18, 2021 06:20PM EST

Total has Issued 3B Worth of Hybrid Bonds to Finance Its Development Strategy in Renewables

Total SE (NYSE:TOT) today successfully issued perpetual subordinated bonds in the amount of 3 billion:

- 1.5 billion at 1.625% coupon for the tranche with a 7 year first call date - 1.5 billion at 2.125% coupon for the tranche with a 12 year first call date

The proceeds from the bonds will be used to finance its development strategy, mainly acquisitions, in renewables, in particular 1.7 billion for the acquisition of a 20% interest in Adani Green Energy Limited.

With a weighted average coupon of 1.875%, this issuance that was very well received by investors will allow the Group to finance its development in renewables at a reduced capital cost.

Jean-Pierre Sbraire, Chief Financial Officer at Total, said: "These hybrid bonds provide a cost of capital comparable to that of pure players in renewables and is therefore suited to finance acquisitions in this business. These bonds will finance in a very competitive way our development in renewables, which is at the heart of our strategy to transform Total into a broad energy company."